Novo Nordisk Falls Another 3% After Tumbling 22% in Prior Trading Session

Novo Nordisk (NVO) ADRs lost more than 3% in the premarket after the Danish drugmaker lowered its full-year outlook, citing, among other things, pressure on its obesity drug franchise led by its GLP-1 medication semaglutide. Shares tumbled 21.8% on Tuesday

Concurrently, the company named Maziar Mike Doustdar, its executive vice president of International Operations, as its new president and chief executive officer, effective Aug. 7, succeeding Lars Fruergaard Jørgensen, who agreed to step down in May.

With its preliminary H1 2025 results, Novo Nordisk (NVO) set its full-year growth outlook for sales and operating profit at 8% - 14% and 10% - 16% on a currency-adjusted basis compared to 13% - 21% and 16% - 24% projected in May, respectively.

As reasons for the guidance cut, Novo Nordisk (NVO) cited lower growth expectations in the U.S. related to Wegovy and Ozempic, the FDA-approved versions of semaglutide indicated for obesity and diabetes, respectively.

Lower than expected market growth, rivalry, and the impact of compounded GLP-1s have affected NVO’s renewed sales expectations for Wegovy in the U.S.

“Despite the expiry of the FDA grace period for mass compounding on 22 May 2025, Novo Nordisk market research shows that unsafe and unlawful mass compounding has continued, and that multiple entities continue to market and sell compounded GLP-1s under the false guise of ‘personalization,’ the company said.

As for H2 results, the company reported ~18% YoY growth in sales on a currency-adjusted basis. driven by gross-to-net sales adjustments related to prior years. Its ~29% YoY growth in operating profile on the same basis reflected headwinds related to the acquisition of the three Catalent manufacturing sites.